European natural gas prices have surged to roughly 63 euros per megawatt-hour, the highest level since January 2023, driven by the U.S.-Iran conflict and the effective closure of the Strait of Hormuz.
The benchmark TTF contract rose nearly 50 percent in a single month, closing at 63.14 euros per megawatt-hour in Amsterdam on Thursday. The blockade has disrupted liquefied natural gas shipments from Qatar and the United Arab Emirates, while Qatar's Ras Laffan export infrastructure has sustained heavy damage. Supply constraints are compounded by weeks-long maintenance outages at the Freeport LNG terminal in the United States.
Storage levels are adding to market pressure. German gas reserves stand at just over 45 percent capacity, 12 percentage points below last year, and Natasha Fielding of Argus Media has warned that stockpiles are at their lowest since the 2022 energy crisis. For comparison, gas averaged 37 euros per megawatt-hour in 2025.